Introduce annual wealth tax

Policy baseline

The Green manifesto proposes 1 percent above GBP 10m and 2 percent above GBP 1bn. External analysts warn claimed yields are weakly specified.

• Targets very high-wealth individuals.
• Valuation, avoidance and migration are central.
• The range is intentionally very wide.

Core trade-offs

The direct beneficiaries are public services and lower wealth inequality. The costs fall mainly on very wealthy households and potentially investment. The main economic question is annual wealth taxes are hard to enforce.

• Public services and lower wealth inequality gain most directly.
• Costs fall mainly on very wealthy households and potentially investment.
• Key risk: annual wealth taxes are hard to enforce.

Fiscal impact by 2028-29

-GBP 70.0bn to +GBP 5.0bn. Central estimate: -GBP 30.0bn.

• Positive numbers mean net fiscal cost; negative numbers mean Exchequer savings.
• Main channel is the scored tax, spending or delivery change.
• Offsets depend on tax receipts, behaviour and pass-through.
• Range reflects uncertain implementation and economic response.
• This is not an official costing.

Economic impact by 2028-29

• Jobs: Little direct job effect; sector-specific taxes can reduce hiring in affected industries.
• Wages: Legal taxpayers may shift costs to workers, owners or consumers over time.
• Prices: Some pass-through likely where market power or fixed demand exists.
• GDP / productivity: Usually mildly negative before spending use; stronger if investment or mobility responses rise.

Assessment

This is a real trade-off, not a free gain. Public services and lower wealth inequality benefit, while very wealthy households and potentially investment bear most costs. Overall output depends on behaviour, capacity and pass-through.

Confidence: Medium-low. Higher on the policy target and fiscal channel; lower on behaviour, pass-through and economy-wide effects.

Main risks

• Behavioural response: Avoidance, timing and relocation can reduce receipts.
• Incidence uncertainty: Legal taxpayers may shift costs to workers, consumers or investors.
• Investment risk: Higher taxes can reduce investment where returns are mobile.

Safeguards

• Use HMRC microsimulation before legislating.
• Close avoidance routes before rate rises.
• Review receipts and investment annually.

Academic evidence

UK government evidence

Sources

• PolicyLens illustrative scenario methodology for introduce annual wealth tax Internal - PolicyLens, 2026
• Green Party manifesto: a reaction Think tank analysis - Institute for Fiscal Studies, 2024
• Green Party manifesto summary Manifesto summary - Local Government Association, 2024
• Wealth Taxation and Wealth Accumulation Academic article - Jakobsen, Jakobsen, Kleven and Zucman, Quarterly Journal of Economics, 2020
• Behavioral Responses to Wealth Taxes Academic article - Seim, American Economic Journal: Economic Policy, 2017
• A Wealth Tax for the UK Academic commission - Advani, Chamberlain and Summers, Wealth Tax Commission, 2020
• Direct effects of illustrative tax changes Tax statistics - HMRC, 2025
• Manifesto for a Fairer, Greener Country Party policy source - Green Party of England and Wales, 2024

Other Green policies

• Raise the minimum wage to £15
• Index public-sector pay to inflation
• Add public-pay restoration premiums
• Raise low-paid public-sector wages
• Cap organisation pay ratios at 10:1
• Protect pay in transition schemes
• Create a single worker status
• Equal terms for outsourced workers